Saturday, August 11, 2007
“Nobody runs faster than a sophistcated banker who gets scared and the financial community is scared”
"When you have 5% or less equity in these things it is based on the assumption that home prices are going to continue to go up. That just simply doesn't exist. It's another bubble. A real estate bubble that created a financial bubble or the other way around. These bubbles are going to collapse and people are going to lose money and the next time they'll be a lot more cautious" "It's only when the tide goes out that you are going find out who is wearing a bathing suit and we don't know what the real exposures are at this stage of the game" "They don't know the value of the derivatives, they don't know the value of the paper, and they don't know the value of the assets behind the paper"